System and method for managing consumer information

ABSTRACT

Method and system of recommending an action to a consumer is provided. The method includes, applying selection criteria to credit data to determine recommended actions for the consumer; determining if any of the recommended actions are frivolous; determining if any of the recommended actions are valid; and comparing the recommended actions to pre-set parameters set by the consumer to determine if the consumer should be notified of any of the recommended actions, if at least one recommended action is non-frivolous and valid. The system includes a processing module for processing user action requests, received from a user, in a batch; and a communications module for sending the user action requests from a system provider to a database; wherein the communications module sends an indication of results or a notice of a lack of results to the user.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims the benefit, under 35 U.S.C. §119(e), of U.S.Provisional Patent Application No. 60/636,715, filed on Dec. 16, 2004,the disclosure of which is incorporated herein in its entirety.

This application is also related to the following applications, filed oneven date herewith, the disclosures of the applications are incorporatedherein in their entirety:

(a) Ser. No. 11/304,782, entitled “SYSTEM AND METHOD FOR MANAGINGCONSUMER INFORMATION” with David B. Coulter, as the inventor;

(b) Ser. No. 11/304,249, entitled “SYSTEM AND METHOD FOR MANAGINGCONSUMER INFORMATION” with David B. Coulter, as the inventor; and

(c) Ser. No. 11/304,781, entitled “SYSTEM AND METHOD FOR MANAGINGCONSUMER INFORMATION” with David B. Coulter, as the inventor.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to systems and methods for informationanalysis, and more particularly to a system for online consumer creditreporting information analysis and distribution.

2. Background

Data accuracy is dependent upon the accuracy of data sources. Inaccurateconsumer financial data has become an enormous problem for consumers,industry, and government. For consumers, inaccurate data, data theft,and other data abuse misrepresent a consumer's identity. Correctinginaccurate data and recovering from data abuse entails a tremendousamount of effort.

Three major credit reporting bureaus, namely, TransUnion™, Experian™,and Equifax™ maintain and report credit information for consumers. Thecredit reporting industry seeks to report as much credit information aspossible to subscribers, which can be financial institutions, employers,landlords, retail environments, government entities, and any otherentities authorized to purchase credit data access from credit reportingbureaus.

Major problems exist with the information maintained by credit reportingbureaus. The sources of creditor information are not entirely reliable,there may be countless differences in a consumer's specific data thatcould be erroneous, and the vast amount of information received by thecredit reporting bureaus makes detecting, verifying, and correctingerrors to be an enormous task. Indeed, the most cost-effective way for acredit reporting bureau to handle errors is to rely on the consumer todetect, verify, and seek correction of errors.

Currently there exist over 2.36 billion errors on credit reports forapproximately 133 million credit report holders in the U.S.Additionally, there are 27,123 identity thefts daily, amounting to over9.9 million victims per year in the U.S. An estimated twenty-ninepercent (29%) of credit reports are believed to contain serious errors,such as false delinquencies or accounts that do not belong to theconsumer. Such errors could result in creditors denying credit to aconsumer. If credit is approved despite such credit report errors, acreditor is likely to charge a consumer a higher rate of interest thanthe rate of interest available if the consumer's credit report lackederroneous information.

Around forty-one percent (41%) of credit reports are believed to containpersonal demographic identifying information that is misspelled,outdated, belonging to a different person, or otherwise incorrect.Approximately twenty-six percent (26%) of credit reports are believed tolist credit accounts that have been closed by the consumer butincorrectly remain listed as open accounts.

Besides erroneous reporting of negative information, errors are alsomade by omission of positive information. Approximately twenty percent(20%) of credit reports are believed to be missing major credit, loan,mortgage, or other consumer accounts that would demonstratecreditworthiness of a consumer.

To attempt to correct reporting errors, the credit repair industryoffers a manual system for correcting data that is reported by creditreporting bureaus. The credit repair industry operates as follows:consumers are charged large up-front fees along with monthly recurringfees; credit repairs starts by mailing requests for hard copies of theconsumer's credit reports; the consumer waits for the return maildelivery of these hard copies of the credit reports to the credit repaircompany; the credit repair company begins to manually process anydisputes and claims without receiving directions from the consumer;finally, disputes and claims are mailed by the credit repair company tothe credit reporting bureaus for processing.

Credit reporting bureaus allow for manual entering of any statements,regarding credit items, which the consumer believes are in error. Suchstatements are reported in the credit reports available online throughthe credit reporting bureaus' systems. However, the process availabledirectly from the credit reporting bureaus is a lengthy process. Forexample, a credit reporting bureau's online system requires that theconsumer provide identifying information and contact information (suchas address, telephone number, social security number, birth date, andthe like) each time entering a statement. This conventional process iseven more burdensome in that such identifying information and contactinformation must be separately provided for each credit reporting bureausystem. Consequently, a need exists for a method to enable consumers toprovide information in a more uniform manner.

Credit scores are often calculated using predictive modeling. Sometimescalled “credit risk scores”, the credit scores are used as predictivetools to assess consumer credit and bankruptcy risk in order for creditgrantors to make profitable decisions in granting credit such as,customer acquisition (prescreening and marketing), credit originationand underwriting, and customer management.

To predict credit risk, credit grantors often use a credit score. Suchcredit scores are widely used by credit grantors in the United States,the United Kingdom, Canada, and South Africa. Credit grantors in anycountry that has credit reporting bureau data are increasingly usingcredit scores.

Besides credit risk scores, other scores used include revenue andattrition scores, application fraud scores, credit-based insurancescores, small business risk scores, collections and recovery scores, andmarketing scores.

The leading producer for credit scores and models for predictingconsumer behavior is the Fair Isaac Credit Organization. The firm'sFICO™ score is the most widely used credit score in the credit reportingindustry. The FICO™ score (a number between 300 and 850) is calculatedwith a proprietary model. The proprietary model evaluates theinformation in a consumer's credit report and compares the informationwith millions of other credit reports. The higher the score, the morelikely a consumer is to be approved for the granting of credit and toreceive favorable interest rates.

While one is not able to identically duplicate the calculation of aFICO™ score, one may generally predict qualitative results from negativeaspects of a consumer's credit data (such as late payments,bankruptcies, and court judgments) and from positive aspects of aconsumer's credit data (such as low debt-to-income ratio, no latepayments, and a lengthy, successful credit history).

Currently, no solution exists for providing a tool or calculator thattakes data, categorizes the data, displays the data with categories, andcalculates related interest rates and payment schedules. Additionally,no solution exists that may simultaneously display any combination of acurrent credit score, an estimated credit score, and a scalablepredicted future credit score.

Identity theft is the fastest growing and number one reported crime inthe United States today. Generally, a victim of identity theft has feweffective options to correct the situation. Understanding what needs tobe done and scheduling time to correct the situation can be overwhelmingto most consumers. A consumer generally becomes a victim of identitytheft because the consumer's personal information is not properlyprotected by current creditors, past creditors, past potentialcreditors, credit reporting bureaus, financial institutions, retailenvironments, government entities, and any other entities likely topossess personal information.

No identity theft protection industry exists, except for credit reportmonitoring services, which simply provide a consumer a periodic copy ofa credit report. There is no automated solution to address the problemor a method of informing the appropriate authorities for assistance.

Therefore, what is desired is a system and method for correcting creditreporting errors (such as inaccurate, outdated, or unverifiableinformation), protect against identity, theft, and predict future creditscores.

SUMMARY OF THE INVENTION

In one aspect of the present invention, a method for management ofconsumer credit report data is provided. The method includes, offering aservice to a user; requesting an action for the service; providing aservice action guide; and initiating an action of credit correctionand/or debt relief and/or identity protection.

In another aspect of the present invention, a system for management ofconsumer credit report data is provided. The system includes, a centralprocessing unit using a system provider for offering a service to auser; a user interface for requesting an action for the service andproviding a service action guide; and a processing module to processrequesting an action for the service between the user interface and acommunication module.

In another aspect of the present invention, a method for online creditreport data analysis and management is provided. The method includes,providing credit reporting information and services to a user through asystem provider; interacting with credit reporting bureaus; obtainingconsumer credit data from the credit reporting bureaus; authorizingthird party access to the consumer credit data; allowing a creditgrantor to submit current credit qualifications to the system provider;verifying whether the current credit qualifications match with the user;and preventing the credit grantor from knowing the identity of any userthat matches the current credit qualifications.

In yet another aspect of the present invention, a method for managingcredit report data is provided. The method includes, obtaining creditreport data, belonging to a user, from a credit reporting bureau;providing suggestions to the user, based upon the user's credit reportdata and an instruction from the user; viewing credit report data withsuggestions for action; and taking action based upon the user'sinstructions.

In another aspect of the present invention, a method of processing anaction is provided. The method includes, gathering consumer credit andnon-credit data (“data”) and storing the data in a consumer database;submitting an action for processing to a creditor or a credit reportprovider; monitoring if the action is accepted; monitoring creditbureaus if the action if accepted; updating the consumer database; andnotifying consumer if action was accepted or rejected.

In another aspect of the present invention, a method of processing anindependent user action is provided. The method includes, determining ifa creditor is located in a consumer database; entering the creditor intothe customer database if the creditor is not in the consumer database,wherein the creditor includes a credit data provider; verifying theconsumer's personal information with information stored in the consumerdatabase; entering the independent user action into the consumerdatabase; determining if the independent user action is frivolous;determining the validity of the independent user action; and processingthe independent user action if the consumer's information is in theconsumer database, the action is not frivolous and the action is valid.

In another aspect of the present invention, a method for processing apotential error or resolving a potential issue based on informationrelating to a consumer's credit including a third-party reportedtransaction is provided. The method includes triggering an eventrelating to the potential error and/or the potential issue based on saidconsumer's credit information; determining if potential error is deemedlikely or not to be an actual error, or said potential issue is deemedlikely or not to be a resolvable issue by accessing one or more datasets; obtaining more information from said consumer; obtaininginformation from one or more creditors; and/or obtaining informationfrom one or more credit bureaus; and if the potential error is deemedlikely to be an actual error, communicating, or assisting said consumerto communicate, with one or more creditors and/or one or more creditbureaus with information to investigate and correct said potentialerror; and if the potential issue is deemed likely to be a resolvableissue, communicating, or assisting said consumer to communicate, withone or more creditors and/or one or more credit bureaus with informationto resolve said issue.

In one aspect of the present invention, a method of recommending anaction to a consumer is provided. The method includes, applyingselection criteria to credit data to determine recommended actions forthe consumer; determining if any of the recommended actions arefrivolous; determining if any of the recommended actions are valid; andcomparing the recommended actions to pre-set parameters set by theconsumer to determine if the consumer should be notified of any of therecommended actions, if at least one recommended action is non-frivolousand valid.

In another aspect of the present invention, a method for sending useraction requests to a database is provided. The method includesprocessing user action requests, received from a user, in a batch;sending the user action requests from a system provider to a database;

sending an indication of results or a notice of a lack of results to theuser; sending a notice to the system provider whether the database haschanged or deleted the disputed credit report entry or whether thedatabase has not acted in response to the user action requests; and

sending a results notice to, the user detailing whether the database haschanged or deleted the disputed credit report entry or whether thedatabase has not acted in response to the user action requests.

In another aspect of the present invention, a system for sending useraction requests to a database is provided. The system includes aprocessing module for processing user action requests, received from auser, in a batch; and a communications module for sending the useraction requests from a system provider to a database; wherein thecommunications module sends an indication of results or a notice of alack of results to the user.

In another aspect of the present invention, a method for suggesting adata change after data analysis is provided. The method includesretrieving database information from a database; segregating thedatabase information into categories; authorizing access to the databaseinformation; alerting a user of any discrepancy in the databaseinformation; and making a suggestion for a data change.

In one aspect of the present invention, a method for determining if anaction is frivolous is provided. The method includes sending the actionthrough one or more filters; applying rules for the filters to theaction restricting possible actions of the consumer; wherein if anaction is determined to be frivolous, then after suggesting alternativeactions and receiving additional information from a consumer,resubmitting the action to one or more filters and if the action passesthen the action is deemed non-frivolous.

In another aspect of the present invention, a method of repairing creditof a consumer is provided. The method includes requesting an action tobe performed on a credit report; verifying whether the action to beperformed is valid; determining if the action should be granted;updating the credit report if the action is valid and granted; andnotifying the consumer whether the action has been granted.

In another a method for determining if an action is valid is provided.The method includes, presenting an action to an interface which sendsthe action to at least one database; comparing the action with rules ofthe at least one database to determine a result and validating a pendingaction; and sending the result to a distribution engine.

In one aspect of the present invention, a method of analyzing aconsumer's credit is provided. The method includes, answering questionsabout the consumer's credit; analyzing the answers to determine creditdata about the consumer; storing the credit data in a leads database;storing the credit data in a credit analysis database; displaying thecredit data to the consumer; inquiring into whether the consumer wantsto register for managing credit online; and registering the consumer orsending the credit data to a marketing analysis engine to categorize thecredit data for future marketing to the consumer.

In another aspect of the present invention, a method for matchingfinancial providers with a consumer is provided. The method includesretrieving consumer credit data; calculating basic assumptions basedupon the credit data; displaying the basic assumptions on a creditscoring meter; and matching the consumer with potential financialproviders.

In another aspect of the present invention, a method for providingcredit credentials for authorized distribution of consumer credit reportdata is provided. The method includes obtaining consumer credit reportdata, belonging to a user, from a credit reporting bureau; identifyingan authorized person for receiving consumer credit report data viewingprivileges; sending a notice to the authorized person with an automaticexpiration of the consumer credit report data viewing privileges;displaying the consumer credit report data, belonging to the user, tothe authorized person; and recording details of authorized person'sviewing of the consumer credit report data, including information onwhich portions of the consumer credit report data was viewed by theauthorized person.

In another aspect of the present invention, a method for simulating acredit score is provided. The method includes, entering user data;accessing a credit score meter; segregating credit data items intocategories; calculating a current credit score; calculating paymentamounts for each of the categories; and re-calculating the credit scorewhenever interest rates, payment amounts, or other data are adjusted.

In yet another aspect of the present invention, a system for simulatinga credit score is provided. The system includes a user interface forentering user data;

a credit score meter for accessing a credit score; and

a processing module for segregating credit data items into categories;wherein the processing module calculates a credit score; an interestrate for each of the categories; and payment amounts for each of thecategories.

In another aspect of the present invention, a method for predicting afuture credit score is provided. The method includes entering user data;accessing a credit score meter; segregating credit data items intocategories; calculating a future credit score; calculating an interestrate for each of the categories; calculating payment amounts for each ofthe categories; and re-calculating the future credit score wheneverinterest rates, payment amounts, or other data are adjusted.

In yet another aspect, a method for determining a credit score isprovided. The method includes entering user data; accessing a creditscore meter; segregating credit data items into categories; calculatinga credit score; adjusting the user data; re-calculating the creditscore; and re-adjusting the user data.

This brief summary has been provided so that the nature of the inventionmay be understood quickly. A more complete understanding of theinvention can be obtained by reference to the following detaileddescription of the preferred embodiments thereof in connection with theattached drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing features and other features of the present invention willnow be described with reference to the drawings of a preferredembodiment. In the drawings, the same components have the same referencenumerals. The illustrated embodiment is intended to illustrate, but notto limit the invention. The drawings include the following Figures:

FIG. 1 is a block diagram of a computing system for executing computerexecutable process steps according to one embodiment of the presentinvention;

FIG. 2 is a block diagram showing the internal functional architectureof the computing system in FIG. 1;

FIG. 3 is a block diagram of a typical topology of a computer networkwith computers, used according to one embodiment of the presentinvention;

FIG. 4A is a block diagram of a system for online management of consumercredit reporting analysis, according to another embodiment of thepresent invention;

FIG. 4B is a block diagram of a system provider as used in the system ofFIG. 4A;

FIG. 4C is a block diagram of a system for online management of consumercredit reporting analysis, according to yet another embodiment of thepresent invention;

FIG. 5A is a block diagram of a system for management of consumer creditreport data, according to one embodiment of the present invention;

FIG. 5B is a flow chart of a method of determining a recommended actionfor a consumer, according to one embodiment of the present invention;

FIG. 5C is a flow chart of a method of determining if a consumer actionis frivolous, according to one embodiment of the present invention;

FIG. 5D is a flow chart of a method of determining the validity of aconsumer's action, according to one embodiment of the present invention;

FIG. 6A is a process flow diagram of a method for sending user actionrequests to a database, according to yet another embodiment of thepresent invention;

FIG. 6B is a block diagram of a system for sending user action requeststo a database, according to yet another embodiment of the presentinvention;

FIG. 6C is a flow chart of a method of processing a consumer's action,according to yet another embodiment of the present invention;

FIGS. 7-8 show screen shots of a service action guide, according to oneaspect of the present invention;

FIG. 9 shows a screen shot for selecting a credit reporting action,according to another embodiment of the present invention;

FIG. 10A shows a screen shot for a credit score meter, according toanother embodiment of the present invention;

FIG. 10B shows a flow chart of a method of utilizing a credit scoringmeter, according to one aspect of the present invention;

FIG. 11 (FIGS. 11( i)-(iii)) shows a screen shot of presented creditreporting bureau reports 120 and features for disputing erroneous andnegative items, according to another embodiment of the presentinvention;

FIG. 12 (FIGS. 12( i)-(iv)) shows a screen shot of presented creditreporting bureau reports and features for disputing erroneous andnegative items, according to yet another embodiment of the presentinvention;

FIG. 13 is a flow chart of a method for online credit report dataanalysis and management, according to another embodiment of the presentinvention;

FIG. 14 is a flow chart of a method for management of consumer creditreport data, according to another embodiment of the present invention;

FIG. 15 is a flow chart of a method for providing credit credentials forauthorized distribution of consumer credit report data, according toanother embodiment of the present invention;

FIG. 16 is a flow chart of a method for a method for simulating acurrent credit score, according to another embodiment of the presentinvention;

FIG. 17 is a flow chart of a method for predicting a future creditscore, according to another embodiment of the present invention;

FIG. 18 is a flow chart of a method for calculating a credit score,according to another embodiment of the present invention;

FIG. 19 is a flow chart of a method for managing credit report data,according to another embodiment of the present invention;

FIG. 20 is a flow chart of a method for sending user action requests toa database, according to another embodiment of the present invention;

FIG. 21 is a flow chart of a method for suggesting a data change afterdata analysis, according to another embodiment of the present invention;

FIG. 22A is a flow chart of a method for disputing credit report itemsdirectly with a creditor, according to one aspect of the presentinvention;

FIG. 22B shows a flow chart that allows a consumer to file anindependent action against a creditor, according to one aspect of thepresent invention;

FIG. 23A shows yet another flow diagram of executable process steps foruser credit report analysis, according to one aspect of the presentinvention;

FIG. 23B shows a flow chart of a method of analyzing a consumer's creditreport, according to one aspect of the present invention;

FIG. 24A shows a flow diagram that allows a user to set certainparameters for monitoring credit report(s), according to one aspect ofthe present invention;

FIG. 24B shows a flow chart of a method of monitoring a consumer'scredit reports and providing the user with an alert if there is andaddition, subtraction or change on any credit report, according to oneaspect of the present invention;

FIG. 25 shows a process flow diagram where “pre-decisioning” is used toaccept and resolve customer disputes, according to one aspect of thepresent invention;

FIG. 26 shows a process flow diagram for debt resolution, according toone aspect of the present invention;

FIG. 27 shows a screen shot where a user can select debt settlement, adirect action or declare identity theft after viewing the user creditreport, according to one aspect of the present invention;

FIG. 28 shows a screen shot where a user has three choices afterselecting the debt settlement option: debt resolution, “validate thisdebt” and interest rate reduction, according to one aspect of thepresent invention;

FIG. 29 shows a screen shot where the user validates a particular debtand system provider communicates with the creditor directly verifyingthat a particular debt is a valid debt, according to one aspect of thepresent invention;

FIG. 30 shows a screen shot that allows a user to request an interestreduction from a creditor, according to one aspect of the presentinvention;

FIG. 31 shows a confirmation screen that provides a summary of all theuser actions based on user selection of the debt settlement tab,according to one aspect of the present invention;

FIG. 32 shows a screen shot that allows a user to review the user'scredit report and declare identity theft, according to one aspect of thepresent invention;

FIG. 33 shows a screen shot that allows a user to declare that the itemon the credit report does not belong to the user, according to oneaspect of the present invention;

FIG. 34 shows a screen shot that allows a user to validate a request,according to one aspect of the present invention;

FIG. 35 shows a second confirmation screen that that allows the user toconfirm all the entries whether disputed or validated, according to oneaspect of the present invention;

FIG. 36 shows a screen shot of a user interface when a user selects theconsumer direct action, according to one aspect of the presentinvention;

FIG. 37 shows a screen shot where a user elects to dispute an entrydirectly with a creditor, according to one aspect of the presentinvention;

FIG. 38 shows a screen shot where a user can verify an entry by clickingon the verification option, according to one aspect of the presentinvention; and

FIG. 39 again shows a confirmation screen where a user can confirm theactions it took by selection tab.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The following detailed description is of the best currently contemplatedmodes of carrying out the invention. The description is not to be takenin a limiting sense, but is made merely for the purpose of illustratingthe general principles of the invention, since the scope of theinvention is best defined by the appended claims.

Computing System:

To facilitate an understanding of the preferred embodiment, the generalarchitecture and operation of a computing system will initially bedescribed. The specific architecture and operation of the preferredembodiment will then be described with reference to the generalarchitecture.

FIG. 1 is a block diagram of a computing system for executing computerexecutable process steps according to one embodiment of the presentinvention. FIG. 1 includes a host computer 10 and a monitor 11. Monitor11 may be a CRT type, an LCD type, or any other type of color ormonochrome display. Also provided with computer 10 is a keyboard 13 forentering text data and user commands, and a pointing device 14 (such asa mouse) for processing objects displayed on monitor 11.

Computer 10 may include a computer-readable memory medium such as arotating disk 15 for storing readable data. Besides other programs, disk15 can store application programs including web browsers by whichcomputer 10 connects to the Internet and the systems described below,according to one aspect of the present invention.

Computer 10 can also access a computer-readable floppy disk storing datafiles, application program files, and computer executable process stepsembodying the present invention or the like via a floppy disk drive 16.A CD-ROM interface (not shown) may also be provided with computer 10 toaccess application program files, audio files and data files stored on aCD-ROM.

A modem, an integrated services digital network (ISDN) connection, orthe like may also provide computer 10 with an Internet connection 12 tothe World Wide Web (“WWW”). An Internet connection 12 may allow thecomputer to download data files, audio files, application program filesand computer-executable process steps embodying the present invention.

FIG. 2 is a block diagram showing the internal functional architectureof computer 10. As shown in FIG. 2, computer 10 may include a centralprocessing unit (CPU) 20 for executing computer-executable process stepsand interfaces with a computer bus 21. Also shown in FIG. 2 are a WWWinterface 26, a display device interface 27, a keyboard interface 28, apointing device interface 29, an audio interface 23, a scanner interface25, a printer interface 24, a video interface 22, and a rotating disk15.

As described above, disk 15 may store operating system program files,application program files, web browsers, and other files. Some of thesefiles may be stored on disk 15 using an installation program. Forexample, CPU 20 may execute computer-executable process steps of aninstallation program so that CPU 20 can properly execute the applicationprogram.

A random access main memory (“RAM”) 30 may also interface to computerbus 21 to provide CPU 20 with access to memory storage. When executingstored computer-executable process steps from disk 15 (or other storagemedia such as floppy disk 16, shown in FIG. 1, or WWW connection 12,shown in FIG. 1), CPU 20 stores and executes the process steps out ofRAM 30.

Read only memory (“ROM”) 31 may be provided to store invariantinstruction sequences such as start-up instruction sequences or basicinput/output operating system (BIOS) sequences for operation of keyboard13.

FIG. 3 shows a typical topology of a computer network with computerssimilar to computer 10, connected to the Internet. For illustrationpurposes, three computers X, Y, and Z are shown connected to theInternet via Web interface 26 (shown in FIG. 2) through a gateway 33,where gateway 33 can interface N number of computers. Web interface 26may be a modem, network interface card, or a unit for providingconnectivity to other computer systems over a network using protocolssuch as X.25, Ethernet, or TCP/IP, or any device that allows, directlyor indirectly, computer-to-computer communications.

It is noteworthy that the invention is not limited to a particularnumber of computers. Any number of computers that can be connected tothe Internet 32 or any other computer network may be used.

FIG. 3 further shows a second gateway 35 that may connect a network ofweb servers 36 and 37 to the Internet 32. Web servers 36 and 37 may beconnected with each other over a computer network. Web servers 36 and 37can provide content, including credit report data, to a user fromdatabase 38 and/or 39. Web servers 36 and 37 can also host the presentcredit reporting information analysis system, according to the presentinvention.

The Internet connects thousands of computers world wide throughwell-known protocols, for example, Transmission Control Protocol(TCP)/Internet Protocol (IP), into a vast network. Information on theInternet is stored world wide as computer files, mostly written in theHypertext Mark Up Language (“HTML”). Other mark up languages, e.g.,Extensible Markup Language (“XML”) as published by W3C Consortium,Version 1, Second Edition, October 2000, ©W3C may also be used. Thecollection of all such publicly available computer files is known as theWorld Wide Web (“WWW”).

The WWW is a multimedia-enabled hypertext system used for navigating theInternet and is made up of hundreds of thousands of web pages withimages and text and video files, which can be displayed on a computermonitor. Each web page can have connections to other pages, which may belocated on any computer connected to the Internet.

A typical Internet user uses a client program called a “Web Browser” toconnect to the Internet. A user can connect to the Internet via aproprietary network, such as America Online or CompuServe, or via anInternet Service Provider, e.g., Earthlink. The web browser may run onany computer connected to the Internet. Currently, various browsers areavailable of which two prominent browsers are Netscape Navigator andMicrosoft Internet Explorer. The Web Browser receives and sends requeststo a web server and acquires information from the WWW.

A web server is a program that, upon receipt of a request, sends therequested data to the requesting user. A standard naming conventionknown as Uniform Resource Locator (“URL”) has been adopted to representhypermedia links and links to network services. Most files or servicescan be represented with a URL.

URLs enable Web Browsers to go directly to any file held on any WWWserver. Information from the WWW is accessed using well-known protocols,including the Hypertext Transport Protocol (“HTTP”), the Wide AreaInformation Service (“WAIS”) and the File Transport Protocol (“FTP”),over TCP/IP protocol. The transfer format for standard WWW pages isHypertext Transfer Protocol (HTTP).

Online Credit Management:

FIG. 4A shows a system 100 for online management of consumer creditreporting analysis. A system provider 102 (such as an online serviceprovider) may serve as a host or vendor for providing credit reportinginformation and services to a user 104. It is noteworthy that the termcredit report data and credit related data intended to include anyconsumer related information in a broad sense and the adaptive aspectsof the present invention are not limited to any particular type/formatof data. Furthermore, the term creditor as used herein includes anentity that provides credit to consumers; furnishes consumer creditinformation or any other third party that can provide consumer relatedinformation.

User 104 (such as a consumer) may be a customer that purchases amembership from system provider 102 to access system 100. Whether user104 is a member or a non-member guest of system provider 102, variousthird parties may start and maintain relationships with system provider102 to offer services and products to user 104. For example, a creditcard issuing institution 106 (such as a bank, savings and loanassociation, credit union, or a finance company) may offer to extendcredit to user 104 by communicating through system provider 102 withinsystem 100, whereby user 104 can see such offers from the institutionsthat system 100 facilitates. However, the institutions cannot see theusers or communicate with the users.

Internet associates 108 (such as Internet portals, search engines, andInternet advertisers) may direct new users 104 to use system 100, forwhich the system provider 102 may provide consideration to the Internetassociates 108. The Internet associates 108 may also operate asprivate-label distributors of services and products offered by systemprovider 102.

Reporting and tracking organizations 110 (for example, a court or anidentification verification service, such as ChoicePoint™, Incorporatedof Atlanta, Ga., in the United States) may contract with the systemprovider 102 to exchange data. The system provider 102 gathers consumerinformation other than credit report data, displays the data in auniform manner and permits the user 104 to dispute, challenge, orconfirm the data.

The system provider 102 sends requests to dispute, challenge, or confirmthe data to a credit reporting bureau. Alternatively, the systemprovider 102 also sends requests to dispute, challenge, or confirm thedata directly to creditors (or other data reporting entities) instead ofcommunicating through the credit reporting bureau.

The system provider 102 can use a system similar to system 100 forpermitting fee-based data verification (“data scrubbing”) access toinformation on the user 104 to confirm and verify information forgovernment, business, and other entities.

Various fraud systems 112 (for example, a provider of fraud managementservices, such as Iovation™, Incorporated of Portland, Oreg., in theUnited States) and financial systems for information 114 (for example, abusiness information provider, such as the D&B Corporation of ShortHills, N.J., in the United States) may start and maintain relationshipswith system provider 102.

Consumers, including the user 104, can add data (such as medical data ifdesired) via a consumer data addition module 116 (for example, a modulethat permits a consumer to enter personal information).

The system provider 102 also interacts with credit reporting bureaus 118(such as TransUnion™ L.L.C. of Chicago, Ill., in the United States;Experian™ of Costa Mesa, Calif., in the United States; and Equifax™Credit Information Services, Incorporated of Atlanta, Ga., in the UnitedStates) to obtain credit reports 120 (such as collections of datamaintained by the credit reporting bureaus 118) and conduct informationdisputes 122 (for example, contacting a credit reporting bureau 118 orthe creditor 114A to dispute information in a credit report 120 andrequest an investigation of the disputed information).

The system provider 102 offers a credit card via a credit card module124 (such as a system for marketing and processing a credit cardapplication). The user 104 also provides credentials via a credentialsmodule 126 (such as a system for authorizing third party access toconsumer credit data).

The user 104 also uses a credit qualifier module 128 (such as a systemfor determining credit worthiness). For example, the system provider 102may allow credit grantors, financial companies, lenders, and the like tosubmit (such as, from the financial systems for information 114) currentcredit qualifications to the system 100.

Alternatively, system 100 is used to retrieve the current creditqualifications from the financial systems for information 114, whichprovides information on consumer credit history. System provider 102prevents the credit grantor from seeing the identity of anyconsumers/users that match the credit grantor's credit qualifications.This current credit qualifications information is presented to the user104 to facilitate application for credit for which the user 104 shouldbe eligible.

System provider 102 charges the user 104 a fee for providing theapplication. The system provider 102 may also charge the credit grantora commission on the completed credit transaction.

System provider 102 interfaces directly with a creditor(s) 114A. In thisaspect, a direct to creditor approach is taken that allows a consumer tofix any credit related problems directly with the creditor. Detailsregarding the process are provided below with respect to FIG. 22A.

System provider 102 after receiving a dispute (or a request to correctcredit information) from a user, and if allowed by creditor 114A,accesses the creditor 114A database directly. Creditor 114A stored datais analyzed and compared with the user data/request. Based on theanalysis, system provider 102 concludes whether the stored data shouldbe corrected or the stored data is accurate. System provider 102notifies both the creditor 114A and user 104 when data needs to bechanged and/or if data is accurate (i.e., a particular loan instrumentis valid).

This service assists both user 104 and creditor 114A because if an itemshould be corrected, it will help both the parties. Also, if a user ismaliciously trying to dispute entries, a creditor is informed.Furthermore, the creditor does not have to deal with various consumersand hence, they can accurately correct their databases, based on theservice provided by system provider 102.

Prepaid services, for example, prepaid services for legal services,telephone cards, insurance, and others, are also provided via systemprovider 102. The prepaid services offer users an alternative to creditand still provide users access to products/services that a user caneasily afford.

Prepaid service providers 126B interface with system provider 102 via aprepaid provider module 126A (or directly via system provider 102).Prepaid module 126A provides a centralized platform for multiple vendorsto provide their services to user 104.

In another aspect, user 104 is provided a user interface (describedbelow) that allows a user to select various services. One such serviceis a credit monitoring service. When an activity takes place on a user'scredit report (for example, a loan), the user is notified via email, faxor other means. If the information is accurate, then the creditor 114Ais also notified of the valid/accurate entry. This allows the creditor114A to flag accurate entries to avoid future disputes.

Although creditors 114A have been described as institutional creditors(for example, banks with databases), the adaptive aspects of the presentinvention are not limited to this characterization. Creditor 114Aincludes individuals who provide personal loans to user 104. Systemprovider 102 receives the information on such personal loans fromcreditor 114A (in this example, an individual) and feeds thatinformation to credit reporting bureaus 118.

System provider 102 also interfaces with alert module 102A that alertscustomers/creditors/credit bureaus as needed. In one aspect, alertmodule 102A is integrated with the system provider 102. In one aspect ofthe present invention, system provider 102 provides a credit report tothe user. The user is then allowed to set up monitoring parameters, asdescribed below.

FIG. 4B shows a block diagram of the system provider 102 used in thesystem 100 of FIG. 4A. The system provider 102 comprises a userinterface 130 (or a receiving module), a processing module 140, and acommunication module 150. The user interface 130 may be displayed on thehost computer 10 and monitor 11 (shown in FIG. 1). The processing module140 is used to process all requests between the user interface 130 andthe communication module 150. The communication module 150 is used toconduct communications between the system provider 102, the user 104(shown in FIG. 4A), and third parties 106-124 (shown in FIG. 4A).

FIG. 4C shows an additional embodiment of the system 100 for onlinemanagement of consumer credit reporting analysis. In this embodiment,the user 104 can request that data/information on a credit report becorrected or the action/request can be automatically generated frommonitoring 125 the credit bureaus 118 with criteria or parameters set bythe user. From the request 117, a possible action is generated 119 whichis validated by databases, such as a credit reporting bureau database118A, creditor 118B, independent database 118C, local database 118D orother type of database provider. Once validated, creditor 114Adetermines if the request should be granted. If the request is granted,the bureau 118 is notified and the data is updated. A results notice issent to the user 104 detailing whether the request was granted and ifthe credit report was updated.

FIG. 5A shows a block diagram of a system 222 for management of consumercredit report data. The system provider 102 interfaces with user 104 tooffer the user 104 the services of the credentials module 216, thecredit score meter 218, and the credit qualifier 220, which aredescribed below in detail.

FIG. 5B is a flow chart of a method of determining a recommended actionfor a user. Data is entered into a customer database 504 by a creditor,independent database or any other third party. Applying selectioncriteria 506, 508, 510 to the data, possible actions, such as reportingan error, debt settlement and identification theft aware and declare,are recommended to the user 104. Selection criteria can includerecommendations to the user 104. For example, if the user's debt is 36months old and is only $100, it may be recommended that the user pay offthe debt and not pursue an action. Once recommended actions have beendetermined, the actions are sent through a frivolous action filter 512(described below with reference to FIG. 5C) and a validation filter 514(described below with reference to FIG. 5D) to ensure that the action isnot frivolous and is valid. Next, the recommended actions are comparedto preset parameters determined by the consumer/user 516. If any of therecommended actions match any of the preset parameters, a recommendationengine 518 reviews the recommended actions and makes a finaldetermination if the consumer should be notified of the recommendedactions. If the consumer is to be notified 528, the action is flagged524, the possible benefits of the action are calculated 526 and providedto the consumer 528. However, if there is no recommended action, theprocess ends 522.

FIG. 5C is a flow chart of a method of determining a frivolous useraction, such as offering to settle a $10,000 debt for $20. First, theuser 104 reviews a credit account/report 530 and determines whether tofile an action or an action is automatically generated. A list ofpossible actions is produced by system provider 102 based on the creditaccount, such as an error on the report 532, proposing a settlement to adebt 534 or the user's identity has been stolen 536. The possibleactions are then sent through local filters 538, 540, and 541 whichcontain rules to determine if the action is frivolous. The rules cancome from various sources, such as creditors, system provider databases,any other third party database, bureaus, creditors, and the FederalGovernment. Rules can include, but are not limited to the following: (1)the action is frivolous if there is no negative item on the creditreport(s) or the user has filed several disputes in a row; (2) theaction is frivolous if the report(s) do not contain any debt or unpaidbalance; and (3) the action is frivolous if the consumer is claimingidentity theft on an item that is no longer active.

These rules are applied globally on all the credit accounts/reports,causing actions of the user 104 to be restricted. For example, filter538 determines if an error reported is a negative item, filter 540determines if the account has any debt and if there is an unpaidbalance, and filter 541 determines if the item the user 104 is claimingidentify theft is still an active item.

If user 104 does not request any action on information obtained from thecredit account/report or an action is not automatically generated 543,the process ends 545.

If the user 104 requests an action or an action is automaticallygenerated 543, such as there is an error on the report 532, proposing asettlement to a debt 534 or the consumer's identity has been stolen 536,the action is compared against local filters 538A, 540A, and 541Asupplied by the creditor. Local filters 538A, 540A, and 541A are appliedonly to the specific action and credit account of the user 104. If theaction does not pass 547 filters 538A, 540A, 541A, no action is taken549. Upon an action failing, the user 104 is notified that the actionhas been ended.

If the user believes that this decision was in error and wishes toescalate the action 561, the user is requested to submit a declarationstating that the request is not frivolous. For example, if the actionwas determined frivolous because the user does not have the account inquestion, the user can submit a declaration stating that the user doeshave the account in question. If the request has been determined not tobe frivolous, the validity of the request is then determined (asdescribed with reference to FIG. 5D below).

FIG. 5D is a flow chart of a method of determining the validity of auser's action. First, the actions/requests 565 are presented 567 to acreditor interface 569 which compares the actions with several databasescontaining rules, as described above. These databases include a globalrules database 571 for determining if the user 104 has an existingaccount, an indexed rules static database 573 for determining if theaccount the user 104 is disputing matches an account in the system, anindexed rules dynamic database 575 containing a list of the user'saccounts and any watch lists the user 104 belongs to (which can beupdated at any time by pulling additional information 579 from thecreditor 581), and a creditor immediate cache database 577 for storingthe data temporarily. Cache database 577 is indexed by the creditor 581in real-time or near real-time 583 and destroyed after access. Thesedatabases are illustrated as examples only and additional databasescontaining additional rules may be provided.

Once creditor interface 569 has presented the user's actions todatabases 571, 573, 575, and 577, the databases respond to creditorinterface 569 with either a pass, fail or abstain for each requestedaction. Responses are sent by the creditor interface 569 to adistribution engine 585 for distributing the responses to correctlocations. If the user 104 has provided insufficient data to determineif a request passes, the user 104 is asked additional questions 587 tofill in the data. The request is again presented to the creditorinterface 567. If the user 104 no longer wants to pursue the request,validation is denied and the process is ended 589. The user 104 can_alsobe asked to wait for a determination of validity and re-submit therequested action to creditor interface 567. This may be as a result ofsystem provider 103 losing a link to creditor 581.

Upon a determination of invalidity, the user 104 is prompted foradditional data and the credit report is refreshed 591. Next, the user104 is asked additional questions 593 to provide the system withadditional data and the requested action is re-submitted to creditorinterface 567, or the requested action is ended if the user does notwant to answer the additional questions 589. If the requested actionpasses the validity test, the requested action is processed 593A.

User Action Requests:

FIG. 6A shows a method 600 for sending user action requests to adatabase, such as a credit reporting bureau 118 (shown in FIG. 4A),creditor 114A or other modules. A step 602 comprises of batch processingof user action requests by the system provider 102 (shown in FIG. 4A). Astep 604 includes sending user action requests (or at least one useraction request) to an appropriate database (such as a credit reportingbureau or another third party database provider). Next, a step 606comprises sending results (or a notice of a lack of results) to theuser.

FIG. 6B shows a block diagram of a system 608 for sending user actionrequests to a database. If the user 104 elects to send a user actionrequest, then the system provider 102 sends the user action request tothe appropriate database 610. The database 610 may be a third partydatabase, such as a credit reporting bureau 118, creditor 114A or othertype of database provider.

The database 610 communicates with the system provider 102. For example,the system provider 102 sends information within a user action requestfor verification regarding a disputed credit report entry to thedatabase 610. Then, the database 610 sends a notice to the systemprovider 102 whether the database 610 has changed or deleted thedisputed credit report entry.

Upon the action or non-action of the database 610, then the systemprovider 102 sends a results notice to the user 104 detailing whetherthe database has changed or deleted the disputed credit report entry orwhether the database has not acted in response to the user actionrequests.

FIG. 6C is a flow chart of a method of processing a user's action.Customer database 595 gathers data from three sources, creditors,independent databases and credit bureaus. Based upon the data stored inthe customer database 595, actions are determined and presented by thesystem provider 102 to creditors. When the action requests an error tobe corrected 597 and an error is found, the error is corrected 605 andthe bureau is updated 607 which in turn updates the user's creditreports 609. The system provider 102 monitors 611 the data from thebureau and updates the user's data in the customer database 595.Alternatively, the bureau may send a report to the system provider 102causing the system provider 102 to update the user's information in thecustomer database 595.

If the action requests an interest rate to be reduced 599, the systemprovider 102 submits an offer 615 to an entity (such as a creditor,collection agency, contract assignee, and the like) which determines ifthe offer is acceptable 617. Upon receiving an unacceptable offer, theentity can end negotiations 619 or submit a counter offer. If thecounter offer is acceptable 621, the new offer is presented to theentity 615. Upon acceptance of any offer to reduce interest rates, thebureau is updated 607 causing the user's credit reports 609 to beupdated. The system provider 102 monitors 611 the data from the bureausand updates the user's data in the customer database 595. Alternatively,the bureaus may send a report to the system provider 102 causing thesystem provider 102 to update the user's information in the customerdatabase 595. User 104 may also choose to reject the counteroffer andend negotiations 623.

An action may also request that a debt be settled 601. First, the systemprovider submits an offer 625 and the entity determines if the offer isacceptable 627. Upon receiving an unacceptable offer, the entity can endnegotiations 619 or submit a counter offer. If the counter offer isacceptable 629, the new offer is presented to the entity 625. Uponacceptance of any offer to settle a debt, payment is initiated through apayment clearing house 633 and when the payment is received 635, thebureaus are updated 607 causing the user's credit reports 609 to beupdated. The system provider 102 monitors 611 the data from the bureausand updates the user's data in the customer database 595. Alternatively,the bureaus may send a report to the system provider 102 causing thesystem provider 102 to update the user's information in the customerdatabase 595. The user 104 may choose to reject the counteroffer and endnegotiations 631.

Finally, identity theft can be reported. Upon reporting identity theft,it is determined if identity theft has occurred or if the report was inerror 603. If the report was in error, no action is taken 631. However,if the report of identify theft was correct, the identity theft isreported to the Federal Trade Commission as well as the creditor.

Service Action Guide:

FIGS. 7-12 show various screen shots using the various adaptive aspectsof the present invention.

FIG. 7 shows a screen shot of a service action guide 230, describingoptions for taking action (opt-in and opt-out), credit corrections, anddebt relief. The service provider 102 (shown in FIG. 4A) charges feesfor actions taken (opting-in). A user 104 (shown in FIG. 4A) may avoidpaying fees by requesting that actions not be taken (opting-out).

Actions are controlled by using action buttons 232-238. Action buttons232-238 may change colors to indicate the status of an action. Forexample, an action button 232 may be a first color (such as grey) toindicate that the user 104 (shown in FIG. 4A) may opt-in (such aselecting to dispute a credit report entry) and choose to pay a fee forrequesting the taking of an action.

Likewise, an action button 234 may be a second color (such as red) toindicate that the user 104 (shown in FIG. 4A) may opt-out (such as whena credit report entry is already being disputed) to not pay a particularfee and to request that an action not be taken.

Credit Reporting Corrections:

Continuing with FIG. 7, for credit corrections, negative credit reportentries are viewed and erroneous entries are disputed. For example,action button 236 is used to opt-in (or opt-out) of an action to disputeerroneous entries (such as inaccurate, outdated, or unverifiable creditreport entries). Opting-in to the action to dispute erroneous entries(such as by clicking on action button 236) indicates to the systemprovider 102 (shown in FIG. 4A) that the user 104 (shown in FIG. 4A)desires that the credit reporting database 118 (or creditor 114A)receive a request that the credit report entry be disputed.

A user (shown in FIG. 4A) elects to view credit items for debt relief.An action button 238 appears adjacent to a credit report entry that iseligible for submission to debt relief. Action button 238 is used toopt-in (or opt-out) of the action of requesting an interest ratereduction from a creditor (114A).

Debt Relief:

FIG. 8 shows a screen shot of the service action guide 230 continuingwith information on debt relief and information on identity protectionactions, including an identity shield. Action button 240 may be aportion of debt relief shown in FIG. 7 above. Action button 240 may beused to opt-in (or opt-out) of the action of requesting an offer ofcompromise from a creditor for debt reduction.

Continuing with debt relief in FIG. 8, action button 242 may be used toopt-in (or opt-out) of the action of requesting that a creditor validatea debt and that the creditor validate the terms and conditions relatedto the debt.

Identity Theft:

In another aspect of the present invention, identity shield services areoffered for preventing identity theft. Action button 244 may be used toopt-in (or opt-out) of the action of disputing a credit report entry asnot belonging to the user 104 (shown in FIG. 4A). In this situation, alabel of “NOT YOURS” may be used.

Action button 246 may be used to opt-in (or opt-out) of the action ofdisputing a particular credit report entry as not belonging to the user104 (shown in FIG. 4A) and submitting the credit report entry toauthorities (such as law enforcement agencies) to report that the user104 (shown in FIG. 4A) is a victim of identity theft for the particularcredit report entry.

Credit Correction Disputes:

FIG. 9 shows a screen shot for correction disputes. The screen shot inFIG. 9 is an exemplary view of a display presented to the user 104(shown in FIG. 4A) after opting-in to a credit dispute action, such asrequesting an action with action button 236 (as explained above withFIG. 7).

Before the user 104 (shown in FIG. 4A) is charged a fee, the user 104(shown in FIG. 4A) is asked to confirm a desire to pay the fee. Detailsof the item to be disputed are displayed in columns A, B, and C for eachof the credit reporting bureaus 118 (shown in FIG. 4A).

The user 104 (shown in FIG. 4A) provides a reason for disputing thecredit data entry. For example, the reason provided may be that theaccount listed in the credit data entry is not an account that belongsto the user 104 (shown in FIG. 4A). A label “This is not my account.”may be used in this situation.

Various other reasons may be provided for disputing the credit dataentry (such as, wrong balance shown, account previously closed, debtdischarged in bankruptcy, and the like). The various reasons fordisputing a credit data entry may be selected from a drop-down box 250,which may list the various reasons plus blank fields for other reasonsnot listed. The user 104 (shown in FIG. 4A) may confirm opting-in to thecredit dispute action by clicking the button 252. If the user 104 (shownin FIG. 4A) elects to cancel the request for the credit dispute action,then the button 254 may be clicked.

It is noteworthy that credit disputes may be taken up directly with acreditor 114A or a credit bureau 118.

Credit Score Meter:

FIG. 10A shows a screen shot for a credit score meter 380. A method forproviding a tool or calculator is used to take data, categorize thedata, and display the data. The data categories include debts, such asmortgage, automobile loan, credit card debt, and personal loan debt. Itis to be understood that the present invention is not limited to thecategories shown in FIG. 10A. For example other categories not shown,but within the scope of the present invention, may be residential rent,business rent, student loan, and medical debt.

User 104 (shown in FIG. 4A) is permitted to change the categorized data.The credit score meter 380 shows a current credit score of 484 in block382, such as a FICO™ score, and a scalable and movable future(predicted) credit score of 658 in block 386. The current credit scorein block 382 may be moved with a current score indicator 384, such asthe triangular button shown. The future credit score in block 486 may bemoved with a future score indicator 388, such as the triangular buttonshown.

Future interest rates and payment amounts are automatically adjusted toshow the savings from improved credit scores. Actions are takenautomatically or upon instructions by the user 104 based uponmodification of the categorized data or the future credit score in block386. Financing and sales of services and products are determined by thecurrent and future information presented to user 104 (shown in FIG. 4A).

User 104 (shown in FIG. 4A) enters, for example, mortgage, auto, creditcard, and personal loan amounts within the corresponding fields. Theremaining time duration of the debt payments, such as the number ofmonths of payments remaining, may be entered for each of the categoriesof debts.

The user 104 (shown in FIG. 4A) moves the current score indicator 384 toa location on a scale 390 to a location corresponding to the currentcredit score. For example, for a current credit score of 485, thecurrent score indicator 384 may be set, as shown in FIG. 10, at about485 along the scale 390.

The user 104 (shown in FIG. 4A) then manually moves or adjusts thefuture score indicator 388 to a desired location along the scale 390 forthe future score shown in block 386. For example, for a future creditscore of 656, the future score indicator 388 may be set, as shown inFIG. 10, at about 656 along the scale 390.

Instead of manually moving or adjusting the future score indicator 388to a desired location, the credit meter 380 automatically moves thefuture score indicator 388 to a desired location in response toadjustments performed by the user 104 (shown in FIG. 4A).

For example, if the amount of the auto loan were predicted to be changedto a lesser amount (such as, from $25,000, as shown in FIG. 10, to$1,000), then the future credit score in block 386 is decreased due to alower debt-to-income ratio. Thus, when adjustments are made in the inputamounts, a future (predicted) credit score in block 386 is automaticallydetermined.

FIG. 10B shows a flow chart of a method of utilizing a credit scoringmeter, according to one aspect of the present invention. The creditscoring meter retrieves data from the user's credit analysis 776,default data 777, such as a user's mortgage or other loans, from theInternet 775, consumer data 781 from the customer system 779 and thirdparty data 785 from a third party 783, such as a creditor. All theretrieved data 776, 777, 781 and 785, along with the current interestrate 789 and other variables 791 such as length of the loan, is used tocalculate basic assumptions for debt categories, current interest rates,future interest rates, current payments, future payments, savings,future credit score, and other like information 787. These assumptionsare then displayed in a credit scoring meter 793 which allows theconsumer to change debt amount by category 795, change the current FICOscore 797, change the future FICO score 799 or other data 800 to desiredvalues, as described with reference to FIG. 10A. The desired values arethen used to re-calculate the basic assumptions 787 so the consumer cansee how improving these values will affect the credit reports. Theinformation from the credit scoring meter is also used to providerecommendations that match the user with financial providers 801, suchas credit card companies and lenders to consolidate loans. The financialproviders, such as credit card companies and mortgage lenders, aredetermined by a decisioning system 803 used by system provider 102.Information in the decisioning system is provided by third parties whoare offering financial products, such as credit cards and lower interestrate loans 805.

Credit Reporting:

FIGS. 11 and 12 show screen shots of presented credit reporting bureaureports and features for disputing erroneous and negative items. It isnoteworthy that credit report entries may be disputed directly with thecredit bureaus 118 or the creditors (114A).

FIG. 11 (FIGS. 11( i), 11(ii), and 11(iii)), for example, shows asummary of negative items and the status of disputed items. Actionbutton 542 is labeled, “In Dispute,” to indicate that the user 104(shown in FIG. 4A) has already previously requested the action ofdisputing the associated debt. Action button 544 is labeled, “Dispute,”to indicate that the user 104 (shown in FIG. 4A) has the option ofrequesting the action of disputing the associated debt.

Action button 546 indicates that the item is disputed. The discrepancyin the item includes the reporting of the account as a current account(“Open”) although the account was discharged in bankruptcy proceedings.Because accounts discharged in bankruptcy should not be reported ascurrent accounts, the account is not reported accurately.

Action button 548 indicates that another item is disputed. Action button550 suggests to the user 104 (shown in FIG. 4A) that the item meritsdisputing as the account is reported as an open account, although theaccount is also reported as charged off. Because charged off accountsshould not be reported as open accounts, the account is not reportedaccurately.

More items are shown in FIG. 12 (FIGS. 12( i), 12(ii), and 12(iii)).Action button 552 merits disputing because, as explained above regardingaction button 546 in FIG. 11, accounts discharged in bankruptcy shouldnot be reported as currently open accounts. As can be seen in FIG. 12,the item is reported at only two credit reporting bureaus (A and B), butnot in another credit reporting bureau (C).

Action button 554 indicates a suggestion the item should be disputed. Inthis situation, several reasons may be available for disputing thereported debt. For example, the account was discharged in a bankruptcy,but the account is still reported as “Open.”

Additionally, the account is not reported by the other two creditreporting bureaus (A and B), presumably because the other two creditreporting bureaus (A and B) have already accurately removed the itemfrom their respective databases. The item may also be disputed becausethe account number is not reported.

Continuing with FIG. 12, action button 556 may also be suggesting todispute an item that is an open collection account, although the accountshould be removed from the credit reporting bureau 118 database as thelast reporting date is earlier than the permitted earliest date(generally seven years after the reporting date). A request for theaction of disputing an item is initiated by clicking action button 558.Disputing the item may also be suggested because the account is listedas an open account, although the account has been discharged inbankruptcy proceedings.

Action button 560 indicates that the item is in dispute. The item isdisputed because a 60-day late payment is reported in the “Late 60 Days”row, but no 30-day payment is reported in the “Late 30 Days” row,despite an entry in the “Creditor Comments” row that the item is a“CURRENT ACCOUNT /WAS 30 DAYS PAST DUE.” Reporting of the 60-day latepayment is erroneous.

Process Flow Diagrams:

FIG. 13 shows a flow chart of a method 700 for providing creditreporting information and services to a user through a system provider102. The method 700 includes a step S702 for interacting with creditreporting bureaus 118. In step S704, consumer credit data is obtainedfrom the credit reporting bureaus 118. In step S706, informationdisputes between the user and the credit reporting bureaus 118 (ordirectly with the creditor 114A) are conducted. In step S708, a thirdparty is authorized access to the consumer credit data.

Continuing with FIG. 13, in step S710, a credit grantor is allowed tosubmit current credit qualifications to the system provider 102. In stepS712, the process verifies whether the current credit qualificationsmatch with the user. In step S714, the credit grantor is prevented fromknowing the identity of any user that matches the current creditqualifications.

FIG. 14 shows a flow chart of a method 716 for management of consumercredit report data. The method 716 comprises a step S718 of offering aservice to a user. The service offered may be credit corrections,credentials, debt relief, credit qualifier, a credit score meter, andthe like.

A step S720 requests an action for the service. If a user 104 (shown inFIG. 4A) proceeds with the step S720 of requesting an action for aservice from the service provider 102 (shown in FIG. 4A), the user 104(shown in FIG. 4A) requests an action for credentials from a credentialsmodule 126 (shown in FIG. 4A), request an action for the credit scoremeter 218 (shown in FIG. 5) or credit score meter 480 (shown in FIG.10), and request an action for a credit qualification from a creditqualifier module 128 (shown in FIG. 4A) or a credit qualifier module 220(shown in FIG. 5).

In step S722, a service action guide is provided, and in step S724, anaction of credit correction is initiated.

Continuing with FIG. 14, debt relief is initiated in step S726.

In step S728, an action for identity protection is initiated. Step S728includes an instruction to deny responsibility for the debt and aninstruction to inform authorities of the identity theft. The systemprovider 102 submits information to online forms provided by governmententities, including the Fair Trade Commission, the Federal Bureau ofInvestigation, and Attorneys General offices to declare that the user isa victim of identity theft and which items on the credit reports havebeen declared by the user to be related to the identity theft.

The system provider 102 reports the appropriate information to thecredit reporting bureaus 118. The user instructs the credit reportingbureaus 118 (through the system provider 102) to block new creditaccounts for a limited time (for example, six months).

FIG. 15 shows a flow chart of a method 730 for providing creditcredentials for authorized distribution of consumer credit report data.In step S732, user's consumer credit report data is obtained from acredit reporting bureau 118. In step S734, an authorized person (orentity) is identified who has viewing privileges for viewing consumercredit report data. In step S736, notice is sent to the authorizedperson with an automatic expiration of the consumer credit report dataviewing privileges. Hence, the authorized person is allowed to view theconsumer's credit data for a limited time.

This data available for viewing is deemed by the system provider 102 asthe electronic property of the user. When a consumer requests credit, aninquiry indication is entered in the consumer's credit report for eachinstance of a formal credit request. Often, a consumer requests creditfrom several entities to seek the most favorable rates available on theopen market. Unfortunately, numerous credit inquiry indications on aconsumer's credit report usually negatively impacts the consumer'sability to obtain favorable credit rates and the consumer's creditscore.

To facilitate the consumer's search for favorable terms, the systemprovider 102 obtains a copy of the consumer's credit report from acredit reporting bureau 118 for distribution to potential creditgrantors designated by the consumer.

Because a copy of the consumer's credit report is only requested once(by the system provider 102), only this one inquiry is indicated on theconsumer's credit report. Thus, the consumer instructs the systemprovider 102 to authorize a plurality of selected potential creditgrantors to view the copy of the consumer's credit report.

Continuing with FIG. 15, in step S738, the user's consumer credit reportdata is displayed to the authorized person. The authorized person mayview the user's consumer credit report data, for a limited time. Theauthorized person is allowed to view the data at a secure website.

In step S740, the details of the authorized person's viewing of theconsumer credit report data are recorded, including information on whichportions of the consumer credit report data was viewed by the authorizedperson.

In step S742, a notice is sent to the user that the authorized personviewed the consumer credit report data. In step S744, the viewingprivileges of the authorized person are revoked.

If the user chooses to revoke the viewing privileges of the authorizedperson, the user can request a confirmation of the revocation of theauthorized person's viewing privileges.

After step S744, the user elects to return to step S732 of the method730 to identify another person authorized to view the user's credit dataand the process continues.

FIG. 16 shows a flow chart of a method 746 for simulating a currentcredit score. In step S748, user data is entered. In step S750, a creditscore meter 218 (shown in FIG. 5) is accessed by the user.

In step S752, credit data items are segregated into categories (such asmortgage, auto loan, and credit cards) and in step S754, a currentcredit score is determined.

Continuing with FIG. 16, in step S756, a current interest rate or anestimated current interest rate is calculated for each of thecategories. Current interest rates or estimated current rates may beautomatically calculated for the benefit of the user. Calculated resultsmay be displayed such as at a secure website on a computer monitor.

In step S758, the process calculates corresponding payment amounts foreach of the categories. In step S760, the current credit score isre-calculated whenever interest rates, payment amounts, resultingsavings, or other data are adjusted.

For example, if a credit score is increased, then an available interestrate may be decreased. The system provider 102 also makesrecommendations to the user regarding particular financial institutionsfor depositing funds for greater savings and financial returns.

A flow chart of a method 762 for predicting a future credit score isshown in FIG. 17. In step S764, user data is entered. In step S766, acredit score meter 218 (shown in FIG. 5) is accessed. In step S768,credit data items are segregated into categories. Step S770, calculatesor predicts a future credit score.

In step S772, an interest rate for each of the categories is calculated.The interest rate may be an estimated future interest rate.

In step S774, payment amounts for each of the categories are calculated.In step S776, the future credit score is re-calculated whenever interestrates, payment amounts, or other data are adjusted. Calculated resultsmay be displayed, such as at a secure website on a computer monitor.

Continuing with FIG. 17, a user can manually move or adjust a current orfuture credit score. The user's manual movement or adjustment of thecurrent or future credit score causes the credit score meter 480 (shownin FIG. 10) to automatically provide a re-calculation of pertinent userdata (for example, present and future interest rates, present and futurepayment amounts, and resulting savings).

For example, if a consumer predicts obtaining an auto loan, the consumermay enter data into the credit score meter 480 (shown in FIG. 10) toindicate the auto loan interest rate and the payment amounts.

Based upon the payment amounts' affect on the consumer's debt-to-incomeratio, the credit score meter 480 (shown in FIG. 10) simulates acorresponding increase or decrease of the consumer's credit score(re-calculating the credit score). The simulated credit score may beconsidered to be a predicted future credit score.

FIG. 18 shows a flow chart of a method 778 for calculating a creditscore. In step S780, user data is entered. In step S782, a credit scoremeter 218 (shown in FIG. 5) is accessed. In step S784, credit data itemsare segregated into categories. In step S786, a credit score (forexample, a current credit score or a future credit score) is calculated.

Continuing with FIG. 18, in step S788, the user data is adjusted, whilestep S790, recalculates the credit score. In step S792, the user data isre-adjusted, for example, if payment amounts are reduced, a consumer'sdebt-to-income ratio may be correspondingly decreased, and the creditscore may be increased.

FIG. 19 shows a flow chart of a method 794 for managing credit reportdata. The method 794 begins with a step S796 of obtaining credit reportdata, belonging to a user, from a credit reporting bureau 118.

In step S798, suggestions are provided to the user, based upon theuser's credit report data and an instruction from the user. Suggestionsfor user actions to improve the credit score may be also made. Forexample, a user is suggested to improve a credit rating by moving alarge credit balance from one account to another account. Anothersuggestion may involve showing the user where mistakes may be made inbanking accounts (such as late fees and not-sufficient funds fees).

In step S800, credit report data (such as a credit report) is viewedwith possible suggestions for action and in step S802, action is takenbased upon the user's instructions.

Continuing with FIG. 19, the method 794 further includes a step S804 forinitiating an offer of compromise corresponding to an item in the user'scredit report data.

In step S806, the offer of compromise is submitted to an entity (such asa creditor, collection agency, contract assignee, and the like) topermit the entity to accept, reject, or counter the offer. The entitymay be any entity authorized to report information to a credit reportingbureau 118, such as a creditor, landlord, financial institution,collection agency, database provider, and the like.

In step S808, payment by the user to a creditor is facilitated. Forexample, the user may pay an amount to the system provider 102. Then thesystem provider 102 may forward the amount to the creditor. The systemprovider 102 may also ensure that the creditor modifies the creditreport data of the user with the credit reporting bureau 118.

In step S810, the credit reporting bureau 118 is notified, to update andupgrade the credit report data of the user.

FIG. 20 shows a flow chart of a method 812 for sending user actionrequests to a database. The database may be a database of a creditreporting bureau 118 (or the creditor 114A). At least one of the useraction requests is a user action request for verification regarding adisputed credit report entry.

In step S814, user action requests that are received from a user areprocessed. The requests may be received in a batch. In step S816, theuser action requests are sent from system provider 102 to a database.

The user action request may comprise of an offer of compromise, arequest to validate a debt, and a request for an interest ratereduction. For example, a user may use the system 100 (shown in FIG. 4A)to request that the credit reporting bureau 118 (shown in FIG. 4A) seekvalidation of a reported debt from the corresponding creditor.

If the user elects to dispute a credit report entry, the creditreporting bureau 118 is contacted directly by the system provider 102(see FIG. 4A). Alternatively, the user may choose to dispute the creditinformation with the creditor (through the system provider 102) insteadof contacting the credit reporting bureau 118.

Still following FIG. 20, in step S818, an indication of results or anotice of a lack of results are sent to the user.

In step S820, a notice to the system provider 102 is sent whether thedatabase has changed or deleted the disputed credit report entry orwhether the database has not acted in response to the user actionrequests. In step S822, a results notice to the user is sent, detailingwhether the database has changed or deleted the disputed credit reportentry or whether the database has not acted in response to the useraction requests.

The system provider 102 (shown in FIG. 4A) allows a user 104 (shown inFIG. 4A) to post a response to a declined disputed item for transmittalto a credit reporting bureaus 118. The system provider 102 (shown inFIG. 4A) may use an escalation process where a declined disputed item isdisputed again with increased emphasis.

FIG. 21 shows a flow chart of a method 824 for suggesting a data changeafter data analysis. The method 824 includes a step S826 for retrievingdatabase information (data) from a database. In step S828, the databaseinformation is segregated into categories, while in step S830; access tothe database information is authorized.

In step S832, a user is alerted of any discrepancy in the databaseinformation. System provider 102 determines which credit report dataitems to include in an alert to the user. The user may decide, afterreceiving an alert, that a credit report entry should be disputed asinaccurate, outdated, unverifiable, or possible identity theft.

For example, if three or more late payments are reported (includingcharge offs and collections), yet the credit score is about 650, thenthe system provider 102 may make a suggestion that the late payments donot belong to the user. The system provider 102 may present the userwith a label of “NOT MINE” or “ID THEFT” in such a situation.

If only one late payment is reported and the score is above 650, thesystem provider 102 may make a suggestion that the reporting of the onelate payment is erroneous. In this situation, the system provider 102may present the user with a notice labeled “NEVER LATE.”

If a 90-day late payment is reported but no 30-day or 60-day latepayments are reported, then the system provider 102 may make asuggestion that the reporting of the 90-day late payment is erroneous.The system provider 102 may present the user with a label of “NEVERLATE2” in such a situation. Similarly, if a 60-day late payment isreported but no 30-day late payments are reported, then the systemprovider 102 may make a suggestion that the reporting of the 60-day latepayment is erroneous. In such a situation, the system provider 102 maypresent the user with a notice labeled “NEVER LATE3.”

If a 90-day late payment is reported and a 60-day late payment isreported, but no 30-day late payment is reported, then the systemprovider 102 may make a suggestion that the reporting of the 90-day latepayment and the 60-day payment is erroneous. Then, the system provider102 may present the user with a notice labeled “NEVER LATE4.”

Likewise, the system provider 102 may make a suggestion that a 90-daylate payment report and a 30-day late payment report are erroneous if no60-day late payment is reported. Then the system provider 102 maypresent the user 104 with a notice labeled “NEVER LATE5.”

If a credit balance is reported and the balance is about thirty percent(30%) of the total balance due and the total balance due is below acertain amount (for example, US$10,000), then the system provider 102may alert the user to take note of the item as potentially paid in full.The system provider 102 may present the user with a notice labeled “PAIDIN FULL.”

If a reported activity date is earlier than a particular time period(for example, two years) and the reported balance is zero, then thesystem provider 102 may alert the user to take note of the item aspotentially a closed account. The system provider 102 may present theuser with a notice labeled “ACCOUNT CLOSED.”

The system provider 102 may alert the user of other discrepancies in thecredit reports. For example, the system provider 102 may alert the userof a mortgage foreclosure although the data indicates that the accountwas paid in full. The system provider 102 may alert the user of an itemreported as discharged in bankruptcy although the data indicates thatthe account has a balance due. The system provider 102 may alert theuser of an item reported as having a zero balance although the dataindicates that the account has not been closed.

The system provider 102 may alert the user of erroneous items such asmultiple addresses, multiple names, multiple spouses, multiple socialsecurity numbers, multiple employers, and the like. The system provider102 may alert the user 104 of any inquiries that are questionable, suchas back-to-back inquiries.

The system provider 102 may alert the user 104 of duplicate itemsreported as separate credit accounts. For example, the system provider102 may determine duplicate credit items by exact matching, withoutconsideration of date. Additionally, the system provider 102 may alertthe user of similar accounts reported as separate credit accounts. Forexample, the system provider 102 may determine similar credit items bychecking for account numbers that are similar (for example, “9329946”and “9329446”), and the respective dates reported are within 90 days ofeach other.

The system provider 102 may alert the user of collections items, such asunreported sales of a collection account from one collection agency toanother collection agency or collection accounts established withoutprior credit history with the reported original creditor. The systemprovider 102 may determine such information by looking for open accountsreporting with zero balances and multiple addresses, multiple names,multiple spouses, multiple social security numbers, multiple employers,and the like.

The system provider 102 may alert the user of an item reported in onecredit reporting bureau 118 that is substantially different from how theitem is reported with another credit reporting bureau 118. For example,one credit reporting bureau 118 may report a credit account as having alarge balance owed while another credit reporting bureau 118 may reportthe same account as paid in full.

The system provider 102 may alert the user of an item reported as aclosed account although the data indicates that the account has abalance due. Additionally, the system provider 102 may alert the user ofcredit item descriptor mismatches.

For example, sometimes an automobile purchase loan is described as ahome purchase loan (such as a mortgage or trust deed agreement) or viceversa. One way to look for these instances would be to flag eachautomobile loan account with a balance over US$100,000 as possibly beingerroneously categorized. Similarly, any mortgage loan account that lists“ACME Auto Financing Partners” as a lien holder could be flagged.

Continuing with FIG. 21, in step S834, system provider 102 makes asuggestion for a data change. The step S834 may also record thesuggestion (such as paying off credit card balances).

In step S836, the suggestion is attached to the database information. Instep S838, the user is notified of the results. The user may provideinstructions in response to the suggestion. In step S840, action istaken based upon the instructions provided by the user.

FIG. 22A shows a flow diagram for disputing credit report errorsdirectly with a creditor 114A, according to one aspect of the presentinvention. Turning in detail to FIG. 22A, in step S842, a user's creditreport is provided to the user.

In step S844, the credit report is analyzed, as described above toascertain items that a user wants to dispute.

In step S846, items for dispute are selected.

In step S848, the selected items are disputed directly with thecreditors 114A. In one aspect, a creditor database is accessed directlyby system provider 102 to analyze the disputed items with respect to theinformation stored by the creditor. In this aspect, the credit bureau118A is not inundated with credit dispute inquires from consumersdirectly.

In step S850, the creditor 114A notifies the credit bureaus that anitem(s) on a consumer's credit report has been disputed. The creditor114A also notifies (via system 102 or directly), when a disputeregarding a credit item has been resolved.

FIG. 22B shows a flow chart that allows a user to file an independentaction against a creditor, according to one aspect of the presentinvention. To request an action, the user 104 enters the name of thecreditor 711 and the system provider 102 verifies that the creditor isin the customer database 713. If the creditor is not located in thedatabase, the user enters the new creditor information 715, theinformation is verified 717 and the new creditor is added to thecustomer database 719. If the creditor is in the database, the systemverifies information about the user 104 depending on the type of actionrequested. When the action requested is reporting an error on a creditreport or proposing an offer of settlement, the system verifies that theuser has a valid account number 721. If the user has an account number,the user 104 enters the account number 723. However, if the user 104does not have an account, number, the user 104 can enter alternateinformation such as a social security number and date of birth 725. Oncethe user 104 has entered the information, the customer database 719verifies the information. When the action requested is reportingidentification theft, the user 104 enters the social security number anddate of birth 727 and the information is verified by the customerdatabase 719.

Next, the user enters the action being requested 720 which is thenentered into the customer database 719. The system provider 10 thendetermines if the request is frivolous 729 (as described above withreference to FIG. 5C) and if the request is not frivolous, the systemvalidates the request with the creditor 731 (as described above withreference to FIG. 5D) before processing the request 733 (as describedabove with reference to FIG. 6C). After the request has been processed,the credit bureaus 735 are notified and a letter 737 is sent to thecreditor 739 if the user is requesting an error be fixed, thusfulfilling the user's requested action 736. If the requested action is aproposal for settling a debt, the proposal is sent to the creditor 739and if the requested action is reporting identification theft, theFederal Trade Commission is notified 741 as well as the creditor.

FIG. 23A shows yet another flow diagram of executable process steps foruser credit report analysis, according to one aspect of the presentinvention. Turning in detail to FIG. 23A, in step S852, system provider102 receives a user credit report from multiple credit bureaus, forexample, Experian®, Transunion® and Equifax®.

In step S854, system provider 102 analyzes the credit report. Theanalysis provides a summary of most likely items of error, items thatcould be identity theft related or inconsistencies between the bureaureports; for example, Experian may report an item on a credit report(for example, “account closed”), while Equifax may still report thatitem to be active.

In step S856, the analysis is provided to the user. The user is providedwith a user interface (similar to that described above) and in stepS858, the user is given plural options to resolve theproblems/challenges highlighted in the analysis. For example, if certainitems are in error, then the user can initiate a “dispute entry” optionto dispute the item. If an entry is related to identity theft, then theuser can declare identity theft and initiate actions to notify thenecessary authorities of the identity theft.

FIG. 23B shows a flow chart of a method of analyzing a user's creditreport, according to one aspect of the present invention. To receive acredit analysis, the user accesses the system through the Internet 745and answers simple, multiple choice credit questions presented on a webform 747. Examples of questions are (1) what is the number of ID Theftrelated items on your credit report?; (2) What do you believe yourCredit Status is?; (3) How many Credit Cards (Including department, butnot debit or prepaid cards)?; and (4) Combined Balance Owed on yourCredit Cards?. Based on the answers to the questions, the user'sestimated credit score, estimated future score, identification theftrisk, potential identification theft damage, savings, and various otherfinancial information about the user 104 is calculated. This informationis then stored in a leads/customer database 751 providing a database ofpotential leads or customers to enroll in the system. In addition to theleads/customer database 751, the information is also stored in a creditanalysis database.

Next, the system provider 102 determines if the user's personalinformation, such as name and address, has been entered or determines ifthe user's personal information is not needed 755. It is possible thatthe system provider 102 will never request the information, will requestthe information at some later time from the user, get the informationfrom a third party or request the information when the user's signs upto be a member. If the system provider 102 wants the user's personalinformation, a web form is presented to the user 104 to collect theinformation 757. The information is entered into a credit scoringalgorithm 759 which then displays the user's estimated credit score,estimated future score, identification theft risk, identification theftdamage and savings to the user by correcting the problem 761.

Next, the system provider 102 inquires if the user 104 would like tosign up as a member 763. If the user 104 decides to sign up as a member,the sign up process is complete 765. If the user 104 decides not to signup as a member, information from the credit analysis database 753 andleads database 751 is sent to a marketing/leads analysis engine 752. Themarketing/leads analysis engine 752 then determines where to store theuser's information. If the user is a good candidate for improving acredit score, the user's information is stored in a target leads base oncredit storage 769. If the user has a high potential of identity theft,the user's information is stored in a target leads base on identitytheft 771. If the user has a high potential for improvement, the user'sinformation is stored in a target leads base on potential improvement773.

FIG. 24A shows a flow diagram that allows a user to set certainparameters for monitoring their credit report, according to one aspectof the present invention. Turning in detail to step S860, a user'scredit report is received. In step S862, system provider 102 analyzesthe credit report (similar to step S854, FIG. 23) and the user isnotified of any inconsistencies, errors or any other item that needsuser's attention.

In step S864, the user is provided a setting tool so that the user canset up certain parameters based on which a user is informed of anyactivity that occurs on a user's credit report. For example, a user canset up a maximum account balance value for a credit card, i.e. a usercan set up a dollar value for a credit card (for example, $10000.00), amaximum charge amount for a credit card (for example, a charge greaterthan $2000.00 per transaction), a user can set up a maximum number ofaccounts that can be opened within a certain period (for example, notmore than 2 accounts per month), or a user can define the number ofcredit related inquires (i.e. if there are more than a certain number ofinquires, for example, 3). It is noteworthy that these examples havebeen provided to illustrate the adaptive aspects of the presentinvention and are not intended to limit the process flow to anyparticular parameter or setting. It is also noteworthy that systemprovider 102 may use certain default settings/parameter values, whichwhen violated (or if they occur), a user is alerted (using alert module102A).

In step S866, the user credit report is monitored for activities. Theactivities are compared to the parameters set by the user and/or thedefault parameters for system provider 102 (jointly referred to as “userparameters”). If an activity occurs that is beyond a user parameter,then the user is notified via email or any other means. Variousactivities can trigger user alerts, for example, new entries on a creditreport, new credit inquires, or any substantial charges and otheractivities.

In step S868, the user is provided an interface to either affirm anentry or dispute the entry.

In step S870, if the user selects to dispute the entry, then the user isautomatically taken to a dispute resolution screen (similar to thescreen in FIG. 8 and the screen shots in FIGS. 36-39). If the userelects to declare identity theft, then the user is provided with theinterface to declare identity theft (similar to identity shield as shownin FIG. 8 and the screen shots in FIGS. 32-35). This allows the user tonotify the authorities/creditors of the identity theft.

FIG. 24B shows a flow chart of a method of monitoring a user's creditreports and providing the user with an alert if there is an addition,subtraction or change on the user's credit report, according to oneaspect of the present invention. The credit reports 809, 811, 813 fromcredit bureaus 807 are monitored for any change and if there is achange, the change is provided to system provider 102. System provider102 sends the information to an individual filter 815 and a globalfilter 817. Filters 815 and 817 have been provided with rules ortriggers 819 by the user 104. Triggers can include, but are not limitedto, activity on specific accounts, a high balance, new accounts and newinquiries. A user 104 can customize an alert so the user 104 will onlybe notified of particular events or changes. When the user 104 receivesthe alert, the user 104 can report back to the creditor that theinformation reported is correct. This allows the creditor to know thatthey weren't the victims of identify theft. If a trigger has occurred,the information is formatted 821 into an alert based upon the user's 104specifications as to relevancy. Relevancy is determined by priorrelevancies stored in the user's alert history 823. Once the alert hasbeen formatted, it is sent via the Internet to a user's computer 827 tonotify the user.

FIG. 25 shows a process flow diagram where “pre-decisioning” is used toaccept and resolve user disputes, according to one aspect of the presentinvention. Turning in detail to FIG. 25, in step S872, a user disputebased on a credit report entry is received.

In step S874, system provider 102 ranks the user dispute based on pluralfactors. For example, system provider 102 uses historical data (forexample, database 610 or interfacing directly with creditor database) todetermine if user 104 has filed frivolous claims; or if user 104 mayhave made a mistake after verifying with the creditor and other similarfactors.

In step S876, system provider 102 provides the user with a rank. Theuser is also notified whether the dispute will be submitted to thecreditor or not. The user is also provided with the reason as to why adispute won't be presented to the creditor. This provides the user withan opportunity to give more information to system provider 102 so thatthe dispute request and rank can be re-analyzed.

If the dispute rank is greater than a pre-programmed threshold value(that can be changed), then the dispute is submitted to the creditor instep s878.

In step S880, system provider 102 assists in resolving the dispute.

FIG. 26 shows a process flow diagram for debt resolution, according toone aspect of the present invention. Turning in detail to FIG. 26, instep S882, the user initiates a debt relief settlement action, using aservice action button.

In step S884, system provider 102 ranks a user offer (similar to theranking process of step S874 (FIG. 25)). If the user offer meets thethreshold value, then the offer is sent to the creditor in step S886. Instep S888, system provider 102 assists in the negotiation process untilthe debt is settled.

User Interface:

FIGS. 27-39 provide screen shots (user interfaces) that allows a user toinitiate debt settlement with a creditor, declare identity theft orinitiate a dispute, as described in the foregoing process flow diagrams.It is noteworthy that the screen shots are merely to illustrate theadaptive aspects of the present invention and are not intended to limitthe invention to the user interface layout and “look and feel”.

FIG. 27 shows a screen shot where a user can select debt settlement 890,a direct action 892 or declare identity theft 894 after viewing the usercredit report 896. The credit report lays out plural entries from allplural credit bureaus. The user can select a particular entry for eachbureau.

In FIG. 27, the user selects the debt settlement option 890. FIG. 28shows the screen shot where a user has three choices after selecting thedebt settlement option: debt resolution 898A, “validate this debt” 898Band interest rate reduction 898C.

The user can select the debt resolution option 898A by simply clickingon that tab. The user can provide a reason for debt reduction 900A andaction is taken when the user clicks on “Take Action” button 900.

FIG. 29 shows the screen shot where the user validates a particular debtand system provider 102 communicates with the creditor directlyverifying that a particular debt is a valid debt. The debit is validatedby the user simply by clicking on the “take action button” 902.

FIG. 30 shows the screen shot that allows a user to request an interestreduction from a creditor. The request is communicated to the creditordirectly. The user enters the interest rate in the user interface thatis shown in FIG. 30 and provides a reason in the segment shown as 906.Thereafter, the user clicks on “Take Action” button 908 and the userrequest for interest rate reduction is sent to the creditor.

FIG. 31 shows a confirmation screen that provides a summary of all theuser actions based on user selection of the debt settlement tab 898Adescribed above. The screen lists the various actions and the costs thatare associated with the actions. The user is given an option to confirmall the actions 910.

After a user reviews the user credit report, the user may declareidentity theft by selecting tab 894 (the selection is shown as 912, FIG.32). The user is given two options: “Declare Not Mine” (914, FIG. 33)and validate (916, FIG. 34). If the user believes that a particularentry in the credit report is not the user's, then the user can selecttab 914, as shown in FIG. 33. This initiates a dispute with the creditorwherein the creditor is notified that a particular entry is not user'sand should be removed from the user's credit report.

The validate option 916 as shown in FIG. 34, allows a user to validatean entry on the credit report, directly with the creditor. Once again,the user is allowed to confirm all the entries whether disputed orvalidated via the screen shown in FIG. 35. By clicking on “I Agree’button (918), the user confirms all the disputed/validated entries.

FIG. 36 shows a user interface when a user selects the consumer directaction 892 (shown as arrow 920). This screen allows a user to dispute anentry or verify that a credit report entry is accurate. FIG. 37 showsthe screen shot where a user elects to dispute an entry (shown by 922)directly with a creditor. The screen shot allows the user to input areason for the dispute 922A and after the reason is entered, the usercan take action by clicking on button 922B.

FIG. 38 shows the screen shot where a user can verify an entry byclicking on the verification option 924. This notifies the creditor thata user has verified a particular account/debt or any other credit reportentry.

FIG. 39 again shows a confirmation screen where a user can confirm theactions it took by selection tab 892. The user can cancel the actions orby clicking on “I Agree” (926) button confirm all the actions. Onceagain, the screen displays the summary of all the actions and the costassociated with the various options.

Although the present invention has been described with reference tospecific embodiments, these embodiments are illustrative only and notlimiting. Many other applications and embodiments of the presentinvention will be apparent in light of this disclosure and the followingclaims.

1. A computer implemented method regarding a consumer's credit,comprising: (a) obtaining a credit report regarding a consumer from oneor more credit bureaus; wherein a computerized system provider executedby a computing system that maintains a database regarding consumercredit information obtains the credit report; (b) presenting the creditreport to the consumer with suggestions to improve consumer credit;wherein the credit report is presented within a user interface displayedon display device and the computerized system provider executed by thecomputing system provides the suggestions; and wherein the userinterface provides the consumer with a first option to initiate an offerof compromise, a second option for disputing an entry in the creditreport directly with a creditor and a third option for declaringidentity theft and electronically notifying one or more entities ofconsumer's identity theft; (c) based on a credit report entry,initiating an offer of compromise from the consumer to a creditor tosettle a debt; wherein the consumer initiates the offer of compromiseelectronically by selecting the first option from the user interface;(d) submitting the offer of compromise to the creditor; wherein thecomputerized system provider executed by the computing systemelectronically submits the offer of compromise directly to the creditor;(e) upon acceptance of the electronically submitted offer of compromiseby the creditor, transferring a payment directly to the creditor tosettle the debt; wherein the computerized system provider executed bythe computing system transfers the payment to the creditor; (f)notifying one or more credit bureaus regarding the debt settlement instep (e); wherein the computerized system provider executed by thecomputing system notifies the one or more credit bureaus; (g) selectingthe second option to dispute an entry in the credit report directly withthe creditor; wherein before the entry is disputed with the creditor,the computerized system provider executed by the computing systemreviews historical data regarding the consumer to verify if the consumerhas disputed entries with the creditor or other creditors; and whereinthe entry is not disputed and the consumer is notified if historicaldisputes by the consumer were held to be without merit; and the entry isdisputed with the creditor when historical disputes by the consumer werevalid; (h) selecting the third option from the user interface to declareidentity theft; wherein the computerized system provider executed by thecomputing system notifies one or more credit bureaus to block consumercredit accounts for a certain duration after identify theft is declared;and wherein the computerized system provider executed by the computingsystem notifies one or more entities of the identity theft.
 2. Themethod of claim 1, wherein the notified entity is a government entity.3. The method of claim 1, wherein the notified entity is anon-government entity.
 4. The method of claim 1, wherein the offer ofcompromise includes an interest rate reduction.
 5. A computer readablemedium containing executable program instructions for a computerimplemented method regarding a consumer's credit, comprising: (a)instructions for obtaining a credit report regarding a consumer from oneor more credit bureaus; wherein a computerized system provider executedby a computing system that maintains a database regarding consumercredit information obtains the credit report; (b) instructions forpresenting the credit report to the consumer with suggestions to improveconsumer credit; wherein the credit report is presented within a userinterface displayed on display device and the computerized systemprovider executed by the computing system provides the suggestions; andwherein the user interface provides the consumer with a first option toinitiate an offer of compromise, a second option for disputing an entryin the credit report directly with a creditor and a third option fordeclaring identity theft and electronically notifying one or moreentities of consumer's identity theft; (c) instructions for initiatingan offer of compromise from the consumer to a creditor to settle a debt,based on a credit report entry; wherein the consumer initiates the offerof compromise electronically by selecting the first option from the userinterface; (d) instructions for submitting the offer of compromise tothe creditor; wherein the computerized system provider executed by thecomputing system electronically submits the offer of compromise directlyto the creditor; (e) instructions for transferring a payment directly tothe creditor to settle the debt, upon acceptance of the electronicallysubmitted offer of compromise by the creditor; wherein the computerizedsystem provider executed by the computing system transfers the paymentto the creditor; (f) instructions for notifying one or more creditbureaus regarding the debt settlement in step (e); wherein thecomputerized system provider executed by the computing system notifiesthe one or more credit bureaus; (g) instructions for selecting thesecond option to dispute an entry in the credit report directly with thecreditor; wherein before the entry is disputed with the creditor, thecomputerized system provider executed by the computing system reviewshistorical data regarding the consumer to verify if the consumer hasdisputed entries with the creditor or other creditors; and wherein theentry is not disputed and the consumer is notified if historicaldisputes by the consumer were held to be without merit; and the entry isdisputed with the creditor when historical disputes by the consumer werevalid; and (h) instructions for selecting the third option from the userinterface to declare identity theft; wherein the computerized systemprovider executed by the computing system notifies one or more creditbureaus to block consumer credit accounts for a certain duration afteridentify theft is declared; and wherein the computerized system providerexecuted by the computing system notifies one or more entities of theidentity theft.
 6. The storage medium of claim 5, wherein the notifiedentity is a government entity.
 7. The storage medium of claim 5, whereinthe notified entity is a non-government entity.
 8. The storage medium ofclaim 5, wherein the offer of compromise includes an interest ratereduction.
 9. A computer program product, comprising: a non-transitorycomputer usable storage medium having computer readable code embodiedtherein for a computer implemented method regarding a consumer's credit;said computer readable code includes: (a) code for obtaining a creditreport regarding a consumer from one or more credit bureaus; wherein acomputerized system provider executed by a computing system thatmaintains a database regarding consumer credit information obtains thecredit report; (b) code for presenting the credit report to the consumerwith suggestions to improve consumer credit; wherein the credit reportis presented within a user interface displayed on display device and thecomputerized system provider executed by the computing system providesthe suggestions; and wherein the user interface provides the consumerwith a first option to initiate an offer of compromise, a second optionfor disputing an entry in the credit report directly with a creditor anda third option for declaring identity theft and electronically notifyingone or more entities of consumer's identity theft; (c) code forinitiating an offer of compromise from the consumer to a creditor tosettle a debt, based on a credit report entry; wherein the consumerinitiates the offer of compromise electronically by selecting the firstoption from the user interface; (d) code for submitting the offer ofcompromise to the creditor; wherein the computerized system providerexecuted by the computing system electronically submits the offer ofcompromise directly to the creditor; (e) code for transferring a paymentdirectly to the creditor to settle the debt, upon acceptance of theelectronically submitted offer of compromise by the creditor; whereinthe computerized system provider executed by the computing systemtransfers the payment to the creditor; (f) code for notifying one ormore credit bureaus regarding the debt settlement in step (e); whereinthe computerized system provider executed by the computing systemnotifies the one or more credit bureaus; (g) code for selecting thesecond option to dispute an entry in the credit report directly with thecreditor; wherein before the entry is disputed with the creditor, thecomputerized system provider executed by the computing system reviewshistorical data regarding the consumer to verify if the consumer hasdisputed entries with the creditor or other creditors; and wherein theentry is not disputed and the consumer is notified if historicaldisputes by the consumer were held to be without merit; and the entry isdisputed with the creditor when historical disputes by the consumer werevalid; and (h) code for selecting the third option from the userinterface to declare identity theft; wherein the computerized systemprovider executed by the computing system notifies one or more creditbureaus to block consumer credit accounts for a certain duration afteridentify theft is declared; and wherein the computerized system providerexecuted by the computing system notifies one or more entities of theidentity theft.
 10. The computer program product of claim 9, wherein thenotified entity is a government entity.
 11. The computer program productof claim 9, wherein the notified entity is a non-government entity. 12.The computer program product of claim 9, wherein the offer of compromiseincludes an interest rate reduction.